NIBA has urged NSW Treasurer, Mike Baird, and Queensland Treasurer, Andrew Fraser, to include insurance taxes on their post-tax forum working group agenda.
The two Treasuers were assigned by consensus to examine tax harmonisation among all states and territories.
Dallas Booth, NIBA CEO on behalf of members, urged Mr Baird of NSW to follow Victoria’s lead and be the last mainland state to commit to abolishing the fire services levy on property insurance.
“When combined with GST and NSW stamp duty, the cost of the policy is increased by over 50%,” he said.
Economic research had shown that by replacing these imposts with new or increased broader based taxes, gross domestic product would grow by almost 2% and leave the nation $500 million a year better off.